- Have now enrolled more than 2,000 medical practices in the Innovative Diagnostic Laboratory ("IDL") system
- More than 1,800 tests were processed by IDL in the quarter, which is more than three times the level in Q1
- Expanded the program for patient access to blood drawing services to more than 8,000 sites across the USA
- Introduced mobile phlebotomist component to add convenience and ease to draw site access
- Initiated early cancer screening program working directly with large at-risk workforce
- Signed binding commitment letter with Milost Global for US$10 Million financing
- Announced Warrant Exercise Incentive Program to encourage early exercise of outstanding and unlisted warrants
TORONTO, Aug. 15, 2017 /PRNewswire/ - GeneNews Limited (TSX:GEN) ("GeneNews" or the "Company") today announced operational and financial results for the three-month period ended June 30, 2017, and provided a progress update on its business.
"The second quarter of 2017 has seen increasing growth of our IDL business as well as the expansion of access to our tests via new practices and much expanded blood-draw site accessibility" commented James R Howard-Tripp, GeneNews' Chairman and CEO. "These developments, along with GeneNews' aggressive outreach campaign to large healthcare systems, hospitals, clinically integrated networks, large physician groups and specific at-risk communities, is expected to significantly expand our list of users and further drive the continued growth of the business."
Financing Activities and Capital Structure
In the quarter, Genenews announced the signing of a binding commitment letter with Milost Global Inc., securing US$10 million in financing. The equity and debt subscription agreement (the "MESA") includes a US$3 million initial draw down, an investment from Milost of up to an additional US$3 million in unsecured convertible notes to be drawn down at the Company's option, and up to US$4 million in GeneNews' common shares to be drawn down, also at the Company's option, in maximum installments of US$1 million. The Company expects to close on the first note within the next few weeks. Proceeds raised from the initial draw down will be used for working capital and especially for the continued execution of the Company's growth strategy.
During the second quarter, GeneNews amended the exercise price of outstanding common share purchase warrants (the "GEM Warrants") as issued to GEM Global Yield Fund LLC SCS as per the agreement.
GeneNews also announced a warrant exercise incentive program that will close August 31, 2017. GeneNews believes that with the additional capital from the exercise of warrants, the Company will be in a stronger position to continue with the development of the IDL business via expanded marketing programs.
Q2-2017 Financial Results
All amounts are expressed in U.S. dollars unless otherwise stated and results are reported in accordance with International Financial Reporting Standards.
Total revenue for the three-months ended June 30, 2017, reflecting actual revenue collected by IDL, was approximately $0.1 million, compared to $0.5 million for the same period in 2016. For the three-month period ended June 30, 2017, GeneNews reported a consolidated net loss of $0.5 million, or $0.01 loss per common share, as compared with a consolidated net loss of $1.5 million, or $0.02 loss per common share, for the three-month period ended June 30, 2016. The $1.0 million decrease in net loss primarily results from the $1.3 million change in revaluation of warrants associated with repricing of warrants in June 2017. In addition, there was lower collected revenue of $0.4 million, offset by declines in general and administrative expenses of $0.1 million.
The Company had approximately $0.1 million in cash and cash equivalents as at June 30, 2017.
"While not yet reflected in the Company's financial results, we estimate our outstanding 2017 billings at approximately $1.4 million and continue to anticipate that our recognized revenue will begin to grow in the months ahead," added Howard-Tripp.
The Company's financial statements and management's discussion and analysis are available on www.sedar.com.
GeneNews, an innovator in the liquid biopsy space, is committed to becoming a leader in advanced diagnostics and personalized medicine, serving as a strong commercialization outlet for early detection of cancer and other chronic diseases. Our mission is to identify, assess and make commercially available a comprehensive menu of diagnostics that provide physicians and patients with personalized clinical intelligence and actionable information to improve health out-comes through the early diagnosis of disease. Our Richmond, Virginia-based Innovative Diagnostic Laboratory clinical reference lab specializes in traditional and advanced clinical evidence-based blood testing that helps find, understand, and address cancer risk in patient populations. Currently, IDL offers risk assessment blood tests for four prevalent cancer types - colon, lung, prostate and breast. GeneNews' common shares trade on the Toronto Stock Exchange under the symbol 'GEN'. More information on GeneNews and IDL can be found at www.GeneNews.com and www.myinnovativelab.com, respectively.
This press release contains forward-looking statements identified by words such as "expects", "will" and similar expressions, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties that could cause the Company's actual events to differ materially from those projected herein. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements, except as required by law.
SOURCE GeneNews Limited